What a vehicle bill of sale is and why you need one

A vehicle bill of sale is a written record that you and the other person sign when one of you sells a car, truck, or motorcycle to the other. It documents who owned the vehicle, who owns it now, how much was paid, and the date of the transfer. The bill of sale protects both the seller and the buyer by creating proof of the transaction.

You need a bill of sale because it becomes part of the title transfer process at your state's motor vehicle department. When the new owner registers the vehicle in their name, they will submit the bill of sale along with the title document. Without it, the registration cannot be completed, and the buyer cannot legally drive the vehicle.

A bill of sale also protects the seller. Once you sign it over, you have a dated record showing you no longer own the vehicle. If the new owner gets a traffic ticket, causes an accident, or the vehicle is abandoned, the bill of sale proves you transferred ownership on a specific date.

Key Takeaways

  • A bill of sale is a signed document that records the sale of a vehicle and becomes part of the title transfer at your state's motor vehicle department.
  • The bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
  • Your state's motor vehicle department website usually has a free bill of sale form you can read and print, or you can use a generic template.
  • Both the seller and buyer should keep a signed copy for their records, and the buyer must bring the original to the motor vehicle department when registering the vehicle.
  • A bill of sale is not the same as a title; the title is the legal ownership document that must also be signed over and submitted separately.

What information must go on a bill of sale

The bill of sale must include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code unique to that vehicle. You can find the VIN on the dashboard on the driver's side, on the title document, or on the vehicle registration card. Never leave this blank—the motor vehicle department will reject the form without it.

The form also needs the sale price, written out in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). Some states require you to list the actual price paid; others allow you to write "as is" or leave it blank if the vehicle was a gift. Check your state's rules before you fill it out.

Include the date of the sale, the seller's full name and address, the buyer's full name and address, and a description of the vehicle (year, make, model, and color). Both the seller and the buyer must sign and print their names. Some states also require the signatures to be notarized, meaning a notary public watches you sign and stamps the document.

Where to find a bill of sale form for your state

Your state's motor vehicle department website has a free bill of sale form designed for your state's specific rules. Search "[your state] motor vehicle department bill of sale" to find it. Most states post the form as a PDF you can read and print at home.

If your state does not provide an official form, you can use a generic bill of sale template from a legal document website. The template should ask for the VIN, sale price, date, and signatures. Make sure the template is labeled for your state or for vehicles generally, not for a specific type of transaction.

Some dealerships and private sellers use their own bill of sale forms. If you are buying from a dealer, they will usually provide one. If you are buying from a private seller, you can bring your own form or ask them to use theirs. Either way, make sure both of you sign it before you leave with the vehicle.

How to fill out and sign the bill of sale

Print the form and fill it out by hand or on a computer before you meet to sign. Write clearly so the motor vehicle department can read it. Do not leave blank spaces; if a field does not explore, write "N/A" or draw a line through it. Use black or blue ink if you are writing by hand.

The seller fills in their name, address, and signature. The buyer fills in their name, address, and signature. Both of you must sign the same copy—do not sign separate copies. If the form requires notarization, you will need to take the signed form to a notary public, who will watch you sign again and add their stamp and signature.

Make photocopies of the signed bill of sale before you hand it over. The seller should keep one copy, and the buyer should keep one copy. The buyer will bring the original to the motor vehicle department when they register the vehicle.

The difference between a bill of sale and a title

The title is the official legal document issued by your state that proves ownership of the vehicle. The bill of sale is a record of the transaction between you and the other person. You need both documents to complete a vehicle sale.

When you sell a vehicle, you sign the back of the title document to transfer ownership to the buyer. You also sign the bill of sale. The buyer then takes both the signed title and the signed bill of sale to the motor vehicle department to register the vehicle in their name. The motor vehicle department will issue a new title in the buyer's name.

If you lose the title, you can request a replacement from your state's motor vehicle department, but this takes time and costs money. The bill of sale cannot replace the title. Both documents are required to complete the sale.

What happens after both people sign

Once you and the buyer have signed the bill of sale, the buyer owns the vehicle. However, the buyer cannot legally drive it or register it until they submit the bill of sale and the signed title to the motor vehicle department. This is why the buyer should take these documents to the motor vehicle department as soon as possible after the sale.

The seller should not drive the vehicle after signing the bill of sale, even if the buyer has not yet registered it. Once you sign, you no longer own it, and you have no insurance coverage if something happens. The buyer is responsible for the vehicle from the moment you both sign.

If the buyer does not register the vehicle within the time frame your state allows (usually 10 to 30 days), the seller may receive notices or bills for the vehicle. This is why it is important to keep a copy of the signed bill of sale showing the date you transferred ownership.

Common mistakes to avoid when using a bill of sale

Do not leave the VIN blank or write it incorrectly. The motor vehicle department will reject the form, and the buyer cannot register the vehicle. Double-check the VIN against the title and the vehicle itself before you sign.

Do not sign a bill of sale that leaves the buyer's name blank. This creates a gap in the chain of ownership and can cause problems when the buyer tries to register the vehicle or sell it later. Make sure both people fill in their full legal names.

Do not assume the bill of sale is complete just because it is a form from the internet. Some generic templates do not include all the information your state requires. Before you sign, check your state's motor vehicle department website to see what fields are required in your state.

Do not forget to make copies. If either person loses their copy, they have no proof of the transaction. Keep your copy in a safe place for at least a few years.

Frequently Asked Questions

Do I need a bill of sale if I am selling a vehicle to a family member?

Yes. Even if the vehicle is a gift or you are selling it to a relative, you still need a bill of sale to transfer the title at the motor vehicle department. The buyer cannot register the vehicle without it. If it is a gift, you can write the sale price as "$0" or "gift," depending on what your state allows.

What if I lost the bill of sale after I signed it?

If you are the seller and you lost your copy, you can request a copy from the buyer or ask the motor vehicle department for a record of the registration transfer. If you are the buyer and you lost the original before submitting it to the motor vehicle department, ask the seller to sign another copy. Do not submit a photocopy to the motor vehicle department unless your state specifically allows it.

Can I use a bill of sale from the internet, or do I have to use my state's form?

Most states do not require you to use their official form, but using it is the safest choice because it includes everything your state requires. If you use a generic template, make sure it includes the VIN, sale price, date, and signatures. Check your state's motor vehicle department website to confirm what fields are required before you sign.

Does the bill of sale have to be notarized?

Some states require notarization; others do not. Check your state's motor vehicle department website or call them to find out. If notarization is required, you will need to take the signed form to a notary public before you submit it to the motor vehicle department. Notaries are available at banks, libraries, and legal document services.

What if the buyer never registers the vehicle in their name?

If the buyer does not register the vehicle, you may still receive bills or notices because the title is still in your name. Keep your signed copy of the bill of sale as proof that you transferred ownership. If you receive notices, contact your state's motor vehicle department and provide them with the bill of sale to show when you sold the vehicle.